Securities and Exchange Commission (SEC)
The US federal agency that oversees securities markets and has become crypto's most prominent enforcement regulator.
Created in 1934 after the 1929 market crash, the SEC protects investors and polices fraud. Its core question for crypto is blunt: is this token a security? If yes, the issuer owes registration and disclosure.
Under chair Gary Gensler the agency sued exchanges and token issuers, arguing most digital assets qualify. It approved spot Bitcoin exchange-traded funds in January 2024 only after losing a court fight to Grayscale. Critics call the approach regulation by enforcement; the agency calls it applying old law to new assets.
Related terms
A US legal standard from a 1946 Supreme Court case used to decide whether an asset counts as a security.
Commodity Futures Trading Commission (CFTC)The US regulator for commodity derivatives markets, which treats Bitcoin and Ether as commodities rather than securities.
Security TokenA token representing a regulated investment — equity, debt, or a share of profits — and subject to securities law.
Bitcoin ETFA fund tracking bitcoin's price that trades on stock exchanges, letting investors gain exposure without holding the coin.